Bristol County – How you can use the appraisal gap to help you buy a house with competing offers? 

When buying or selling a home, I can be a powerful asset for you.
The main focus of my services is to help and educate homebuyers and sellers so they understand from the beginning the entire process of buying and owning a home.

All agents are not the same. As in every profession there are those that excel and are committed to excellence, and those that are not. I have what it takes to make a difference on all your real estate needs.
Now, I would like to talk about How you can use the appraisal gap to help you buy a house with competing offers? 

What’s an Appraisal? 

An appraisal is a valuation of a property by a licensed real estate appraiser. A mortgage lender hires an appraiser for their mortgage application to determine the value of the property
The bank will lend money to the buyer for the purchase of the house, assuming the property is valued at a certain price. The bank will take the house as collateral for the loan.

Mortgage lenders use appraisers to assess what the value of a property… to see if it is worth enough to lend money to buy. 

This helps to safeguard the bank from lending too much money to a property which is not worth the contract price.

You may have different opinions on the value of a property. You can find out how much it is worth by getting different estimates from three different professionals.
An appraiser is someone who determines the current market value of a property by using  recently sold properties to help determine a home’s value. Those are called “comparables”

They break down the components of each comparable property sold to arrive at an estimated value of the home.

How do Appraisal Contingencies Work When You’re Purchasing a Home?

If the home appraises at a lower value than expected, the buyer and lender can withdraw from the contract. This is a great way to get out of a contract if you do not have the money to buy the property.
Remember, the property must appraise for the value of the purchase price or higher.

What is an Appraisal Gap Clause, and How Does It Work?
The buyer will pay for the gap between the contract price and the appraised value.

If the property appraises for less value, then the purchaser must pay the difference

How you can use the appraisal gap to help you buy a house? 
If you are looking to buy a home, you may want to take advantage of this strategy when you have several competing offers. 

On a  “seller’s market”, homes are in high demand and sellers are eager to unload their properties for the highest price.
Your offer is more valuable to them because it assures them that they could get more money than their house is worth.

A buyer can make an offer with a lower purchase price, but the offer is enticing because of the appraisal gap. 

The buyer does not have to guarantee that they will pay for “ALL” the difference, you can put a “stop gap” of $5,000 for example 

What this allows you to do is getting your offer accepted amongst other offers by enticing the seller’s with more money.

Other offers may be higher than yours, but yours gives them a guarantee that they will receive more money if the house’s value is less.

When you buy a house, it is best that you talk to an experienced agent to give you the extra edge to get your offer accepted. 

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you’ve signed.

Please don’t hesitate to call and ask me any questions you might have. This process is all about you and your needs. Real Estate is a big investment and I understand that. One thing you will get with us is a personal relationship, In the end, that goes a long way.

To get started contact Debbie Davignon at 508-989-0972
or email

Deborah Davignon

Deborah Davignon

The Davignon Southcoast Homes Team

(508) 989-0972


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